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Usury limit for Louisiana judgment


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While reviewing my judgment docs, I noticed the interest rate is accruing at a rate of 24.74% per year. I am located in Louisiana, and the information I have researched shows the interest rate limit being at 12%. Is this a usury violation? If so, what should I do?

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I could be wrong, but a judgment is not affect by lending statute.

Also, without looking at LA law, I would bet it's a similiar law as in Texas with any loans under thant percent are not subject to certain regulation.

That being said loans/contracts/cc/etc are allowed by law to offer credit or money at a much higher rate (think about all those people running around with 20% interest CC and car loans). They are just subject to further regulation by the state and often require licensing.

There very well may be a cap at what % rate can be offered, but I bet it's more than 12.

Now that % is awfully high but what was your % rate per the contract/agreement? My guess is it's the same rate, or a slight increase.

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Not only does the post judgment sound high, it is high.:shock:

Here is an excerpt from a site. I have provided the link, but I didn't check the state statute referenced. It is there for you to check though.

Interest Rate at which Judgments Accrue The legal rate of interest between Sept. 11, 1981 and Jan. 1, 1988, is 12%. Thereafter, the legal rate of interest is one point over average prime as defined and as calculated Oct. 1 of each year, subject always to a cap of 14% and floor of 7%. La. Civil. Code Ann. art. 2924.

Legal interest attaches from date of judicial demand on all judgments sounding in damages "ex delicto." La. Rev. Statute. Ann. 13:4203. Legal interest on any claim for personal injury or wrongful death against the Statutee or its political subdivisions shall accrue at six percent per annum from the date of service is requested following judicial demand until the judgment thereon is signed by the trial judge.

Legal interest accruing subsequent to the signing of the judgment shall be at the rate as detailed above. La. Rev. Statute. Ann. 13:5112. When the object of the performance is a sum of money, damages for delay in performance are measured by the interest on that sum from the time it is due, at the rate agreed by the parties or, in the absence of agreement, at the rate of legal interest. La. Civil. Code Ann. art. 2000.

Garnishment Laws and Procedures listed by State

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§4202. Rates of judicial interest

B.(1) On and after January 1, 2002, the rate shall be equal to the rate as published annually, as set forth below, by the commissioner of financial institutions. The commissioner of financial institutions shall ascertain, on the first business day of October of each year, the Federal Reserve Board of Governors approved "discount rate" published daily in the Wall Street Journal. The effective judicial interest rate for the calendar year following the calculation date shall be three and one-quarter percentage points above the discount rate as ascertained by the commissioner.

Office of Financial Institutions

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§4202. Rates of judicial interest

B.(1) On and after January 1, 2002, the rate shall be equal to the rate as published annually, as set forth below, by the commissioner of financial institutions. The commissioner of financial institutions shall ascertain, on the first business day of October of each year, the Federal Reserve Board of Governors approved "discount rate" published daily in the Wall Street Journal. The effective judicial interest rate for the calendar year following the calculation date shall be three and one-quarter percentage points above the discount rate as ascertained by the commissioner.

Office of Financial Institutions[/quote Thank you for posting the link, and to everyone else for their helpful input. Let me make sure I understand this correctly. A judgment awarded to a junk debt buyer JC for a credit card default would be subject to a judicial interest rate? The site for the LA Office of Finance lists the judicial interest rates from 2003 - current, as fluctuating between 3.75% - 9.0%. Here's the link: Office of Financial Institutions (listed under LEGAL, then Judicial Interest Rates)The judgment order clearly states a rate of 24.74%. Is this illegal? If so, is there anything I can do about it? I don't mind paying the debt that I do owe, I only want to be certain that what I am paying is fair and within the legal limits.

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§4202. Rates of judicial interest

B.(1) On and after January 1, 2002, the rate shall be equal to the rate as published annually, as set forth below, by the commissioner of financial institutions. The commissioner of financial institutions shall ascertain, on the first business day of October of each year, the Federal Reserve Board of Governors approved "discount rate" published daily in the Wall Street Journal. The effective judicial interest rate for the calendar year following the calculation date shall be three and one-quarter percentage points above the discount rate as ascertained by the commissioner.

Office of Financial Institutions[/quote Thank you for posting the link, and to everyone else for their helpful input. Let me make sure I understand this correctly. A judgment awarded to a junk debt buyer JC for a credit card default would be subject to a judicial interest rate? The site for the LA Office of Finance lists the judicial interest rates from 2003 - current, as fluctuating between 3.75% - 9.0%. Here's the link: Office of Financial Institutions (listed under LEGAL, then Judicial Interest Rates)The judgment order clearly states a rate of 24.74%. Is this illegal? If so, is there anything I can do about it? I don't mind paying the debt that I do owe, I only want to be certain that what I am paying is fair and within the legal limits.

Call the LA Bar Association's Lawyer Referral Service. See if they can provide a name of an attorney who will speak to you just to answer that question. It may not cost you anything.

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Curious as to the type of contract/debt it was.

Was there a clause that dictates that post default / judgment interest rate will be greater than or equal to the interest rate during the term of the contract?

If it was a contract, there may have been clauses to waive certain state rights such as interest caps, homestead exemptions etc.

These clauses may or may not actually be legal, depending upon the ind state law and the circumstances.

If it is not a contract, and is some other debt (CC, or whatever)...there may even be similiar wording in the agreement.

If this was a default, they may have just asked for a higher rate, and since now one was there to argue, then they got it. That to me would be grounds to bring the case back before the court...of they may just change the %.

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Curious as to the type of contract/debt it was.

Was there a clause that dictates that post default / judgment interest rate will be greater than or equal to the interest rate during the term of the contract?

If it was a contract, there may have been clauses to waive certain state rights such as interest caps, homestead exemptions etc.

These clauses may or may not actually be legal, depending upon the ind state law and the circumstances.

If it is not a contract, and is some other debt (CC, or whatever)...there may even be similiar wording in the agreement.

If this was a default, they may have just asked for a higher rate, and since now one was there to argue, then they got it. That to me would be grounds to bring the case back before the court...of they may just change the %.

The judgment was for a credit card from First USA Bank. First USA sold the debt to a JDB, TICOS LLC. They pulled the old sewer service routine on me. First, they filed the suit in a parish I don't even reside in (and not even a neighboring parish). Then, they served me at an address that does not exist. Had I been served, I would have disputed the debt in court since the SOL had run out on it. I would file to have it vacated, but time is not on my side as we are scheduled to close on the sale of our house by month's end. I do not want to pay these bastards the $7,800.00 they are wanting. However, I am willing to settle for $2,000.00 with $1790.00 being the balance on the card I should have paid :(. Hindsight is 20/20.

I received a response from an attorney last night.

"If the judgment requires the contract rate that's what you owe. Go to the

clerk of court and ask to see the suit record. See if there is proof of

service of process on you."

So, off to the courthouse I go first thing Monday morning.

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The judgment was for a credit card from First USA Bank. First USA sold the debt to a JDB, TICOS LLC. They pulled the old sewer service routine on me. First, they filed the suit in a parish I don't even reside in (and not even a neighboring parish). Then, they served me at an address that does not exist. Had I been served, I would have disputed the debt in court since the SOL had run out on it. I would file to have it vacated, but time is not on my side as we are scheduled to close on the sale of our house by month's end. I do not want to pay these bastards the $7,800.00 they are wanting. However, I am willing to settle for $2,000.00 with $1790.00 being the balance on the card I should have paid :(. Hindsight is 20/20.

I received a response from an attorney last night.

"If the judgment requires the contract rate that's what you owe. Go to the

clerk of court and ask to see the suit record. See if there is proof of

service of process on you."

So, off to the courthouse I go first thing Monday morning.

Service of process? You weren't served?

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Service of process? You weren't served?

No, I was never served. The address on the paperwork I copied from the clerks office lists an address I never resided at. In fact, the address doesn't even exist.

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Read your court rules for service. If you can show that you never lived at that address at the time they claimed to serve you (utility bills, mortgage, etc.), you should be able to get the judgment vacated. That would start the process over again, but you could at least defend yourself, or work out a settlement.

BTW, what kind of debt is this? Credit card?

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Read your court rules for service. If you can show that you never lived at that address at the time they claimed to serve you (utility bills, mortgage, etc.), you should be able to get the judgment vacated. That would start the process over again, but you could at least defend yourself, or work out a settlement.

BTW, what kind of debt is this? Credit card?

Thank you for the information. Yes, it is for a credit card. How long does it take to vacate a judgment? I don't have much time since we are selling our house and I need to resolve this before we can close. If not, they JC gets the total amount of the judgment. I want to settle for as little as possible.

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Thank you for the information. Yes, it is for a credit card. How long does it take to vacate a judgment? I don't have much time since we are selling our house and I need to resolve this before we can close. If not, they JC gets the total amount of the judgment. I want to settle for as little as possible.

I don't know LA law. Vacating a judgment doesn't happen immediately. Perhaps the attorney you spoke to can give you some information. If you weren't properly served, that might give you some bargaining power.

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I don't know LA law. Vacating a judgment doesn't happen immediately. Perhaps the attorney you spoke to can give you some information. If you weren't properly served, that might give you some bargaining power.

If the closing is too soon to allow the timeframe to vacate the judgment, consider having the closing attorney hold the escrow for the amount of the judgment while you get it vacated. Naturally, you would need to have a timeframe for the escrow.

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If the closing is too soon to allow the timeframe to vacate the judgment, consider having the closing attorney hold the escrow for the amount of the judgment while you get it vacated. Naturally, you would need to have a timeframe for the escrow.

Thank you for the suggestion, Denita! It had crossed my mind, but I wasn't sure if it was allowed. My husband has a judgment against him that is scheduled to expire (unless renewed) in two months. I don't expect it will be renewed since they have made no attempt to garish or collect. Would it be possible for the closing attorney to escrow the amount for this judgment until it expires, and then transfer us the money back once it does?

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He ought to be able to hold the escrow, but verify with your real estate attorney that will vacate the judgment. He will need to coordinate with the closing attorney. Since you are the seller it should work (as opposed to being the buyer). Make sure you check right away, it may impact the title. I'm not familiar with the title process in LA, so check with the attorney's right away. Good luck.

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